The U.S. Treasury said on Friday it plans to auction its warrant positions in Citigroup (NYSE:C), Boston Private Financial Holdings (NASDAQ:BPFH) and Wintrust Financial (NASDAQ:WTFC) during the current quarter.
The Treasury plans on selling the warrants, which it obtained after providing bailout capital to the banks under the capital purchase program [CPP] and targeted investment program during the financial crisis, via public offerings.
The move ends the Treasury’s financial commitments to those companies and is expected to add to the federal agency’s profit. In December, the department sold the last of its Citigroup shares, bringing its total profit from the investment to $12 billion.
Deutsche Bank (NYSE:DB) has been retained by the Treasury as the Dutch auction’s agent and sole bookrunning manager, charged with accepting bids and identifying a clearing price for each auction.
The Treasury said it plans on conducting similar auctions in the future for warrant positions in other financial intuitions that have repaid CPP.